FILE PHOTO: AirAsia crew members pose for a photograph in front of an Airbus A320-200 plane at Kuala Lumpur International Airport in Sepang, Malaysia, July 22, 2019. REUTERS/Lim Huey Teng/File Photo
AirAsia will soon connect two of Malaysia’s most popular destinations with the airline commencing three weekly services between scenic Kuching and idyllic Langkawi from 13 November 2020.
All-in-fares for BIG members start as low as RM59* one way and are available for booking at airasia.com and via the AirAsia mobile app.
SNAP (flight+hotel) combos inclusive of return flight and 3 days/2 nights stay at Pelangi Beach Resort Langkawi or Nadias Hotel Cenang are available from RM269** per person, meanwhile, Tune Hotel – Waterfront Kuching or Regatta Suites Kuching are also available from RM219** per person.
Travellers can also book airport transfers, transport services or activities on airasia.com (through the ‘Activities’ tab). From Kuching, enjoy a day trip to Bako National Park, get up close with the orangutans at Semenggoh Wildlife Rehabilitation Centre or learn about Sarawak multi-ethnic culture at the Sarawak Cultural Village. In Langkawi, indulge in a sunset dinner cruise on the Andaman Sea or challenge yourself with some adrenaline-pumping activities such as Zipline, ATV ride or jet ski ride.
FILE PHOTO: AirAsia crew members pose for a photograph in front of an Airbus A320-200 plane at Kuala Lumpur International Airport in Sepang, Malaysia, July 22, 2019. REUTERS/Lim Huey Teng/File Photo
FILE PHOTO: A Malaysia Airlines plane is seen at Kingsford Smith International Airport in Sydney
KUALA LUMPUR (Reuters) – Privately held Golden Skies Ventures (GSV) has made a $2.5 billion offer to fully take over the holding company of ailing state carrier Malaysia Airlines, with financing from a European bank, its executives told Reuters on Monday.
GSV, which was set up by former Malaysia Airlines officials and professionals with aviation experience, made the proposal a month ago, as airlines around the world were hammered by travel restrictions following the coronavirus pandemic.
“We have secured in excess of $2.5 billion from the bank. We will take about three to four months to get the long-term financing,” Chief Executive Shahril Lamin told Reuters in a phone interview.
GSV said it also has a commitment from a Japanese private equity firm to inject immediate funds into the aviation group through an equity deal.
It declined to name the firms involved, adding it was in talks with other foreign banks and private equity firms for further funding.
GSV has submitted its proposal to Morgan Stanley which has been hired by the aviation group’s sole owner, sovereign wealth fund Khazanah Nasional Bhd.
Sources have previously said Japan Airlines Co Ltd, domestic carriers AirAsia Group Bhd and Malindo Air have shown interest in Malaysia Airlines.
GSV said it would assume most of the airline’s debt that is being held by the government in outstanding Islamic bonds.
Khazanah and Morgan Stanley did not immediately respond to emailed requests for comment.
GOLDEN SHARE
The proposal includes keeping the government’s so-called golden share which allows it majority voting rights and maintains Malaysia Airlines’ flag carrier status.
GSV expects it will have ample liquidity to help the airline operate comfortably for up to 18 months.
It intends to reinstate Malaysia Airlines as a premium long-haul airline by expanding its flight network and maximising utilisation of its 81-plane fleet. It also plans to keep other business units such as the budget airline, cargo freighter and maintenance repair and overhaul unit.
“It’s still a viable venture, it has inherent strengths. We are saying we won’t lay off the 13,000 frontline employees and we are not going to asset-strip the airline,” Deputy Chief Executive Ravindran Devagunam said.
The firm aims to achieve positive earnings before interest, taxes, depreciation and amortisation within three years of taking over, and targets 15 billion ringgit ($3.5 billion) in revenue in 2025.
Plans for a listing or possible listing of its units are on the cards in three to five years, they said.
Ravindran said the firm is banking on pent-up travel demand when the coronavirus is contained. “Regardless of how long (the virus) will take this year, we are looking at an uptick in the business from summer 2021.”
($1 = 4.3450 ringgit)
(Reporting by Liz Lee; Editing by David Holmes and Edwina Gibbs)
Since the COVID-19 outbreak began, Emirates and dnata have been adapting operations in line with regulatory directives as well as travel demand.
The airline has aimed to maintain passenger flights for as long as feasible to help travellers return home amidst an increasing number of travel bans, restrictions, and country lockdowns across the world. It continues to maintain vital international air cargo links for economies and communities, deploying its fleet of 777 freighters for the transport of essential goods including medical supplies across the world.
With many of its airline customers dramatically reducing flights or ceasing services altogether, dnata has also significantly reduced its operations, including temporarily shutting some offices across its international network.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group said: “The world has literally gone into quarantine due to the COVID-19 outbreak. This is an unprecedented crisis situation in terms of breadth and scale: geographically, as well as from a health, social, and economic standpoint. Until January 2020, the Emirates Group was doing well against our current financial year targets. But COVID-19 has brought all that to a sudden and painful halt over the past 6 weeks.
“As a global network airline, we find ourselves in a situation where we cannot viably operate passenger services until countries re-open their borders, and travel confidence returns. By Wednesday 25 March, although we will still operate cargo flights which remain busy, Emirates will have temporarily suspended most of its passenger operations. We continue to watch the situation closely, and as soon as things allow, we will reinstate our services.”
Having received requests from governments and customers to support the repatriation of travellers, Emirates will continue to operate passenger and cargo flights to the following countries and territories until further notice, as long as borders remain open, and there is demand: the UK, Switzerland, Hong Kong, Thailand, Malaysia, Philippines, Japan, Singapore, South Korea, Australia, South Africa, USA, and Canada. The situation remains dynamic, and travellers can check flight status on emirates.com.
Sheikh Ahmed added: “Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
Cost reduction measures
The Emirates Group has undertaken a series of measures to contain costs, as the outlook for travel demand remains weak across markets in the short to medium term. This includes:
Postponing or cancelling discretionary expenditure
A freeze on all non-essential recruitment and consultancy work
Working with suppliers to find cost savings and efficiency
Encouraging employees to take paid or unpaid leave in light of reduced flying capacity
A temporary reduction of basic salary for the majority of Emirates Group employees for three months, ranging from 25% to 50%. Employees will continue to be paid their other allowances during this time. Junior level employees will be exempt from basic salary reduction
Presidents of Emirates and dnata – Sir Tim Clark and Gary Chapman – will take a 100% basic salary cut for three months
The Emirates Group has strong liquidity, with a healthy cash position but it is prudent that it take steps to reduce costs at this time. Emirates remains committed to serving its markets and looks forward to resuming a normal flight schedule as soon as that is permitted by the relevant authorities.
Safeguarding customers, employees, and communities
Emirates Group closely monitors the situation and keeps in regular contact with all relevant authorities, so that it can implement the latest guidance to keep travellers and its employees safe and healthy.
The company has strongly discouraged its employees from non-essential travel, implemented work from home policies for all employees where operationally feasible, enhanced cleaning and disinfection protocols at its facilities, introduced temperature screening at its key office entry points, and launched internal educational campaigns on hand hygiene and health practices to reduce risk of COVID-19.
Over the past weeks, the airline has also implemented enhanced cleaning and disinfecting measures on all of its aircraft departing Dubai as a precaution, and worked closely with airports to implement screening measures as required by the local authorities.
Frontline employees such as crew and airport teams have also been provided with support to stay safe while on duty, including providing hand sanitizers and masks where required.
The Emirates Group fully supports all initiatives to safeguard the health of communities in every market where it operates, including the UAE’s national COVID-19 response.
KUALA LUMPUR (Reuters) – Shares of Malaysia’s AirAsia Group <5099.KL> fell on Monday, after allegations by Britain’s Serious Fraud Office that Airbus <EADSY> paid a bribe of $50 million to win plane orders from Asia’s largest budget airline group.
AirAsia shares fell as much as 11% to 1.27 ringgit – their lowest since May 2016 – while those of AirAsia X tanked 12% to their all-time low of 11.5 Malaysian sen.
Malaysia’s anti-graft agency is investigating the allegations from Britain. AirAsia has said it never made any purchase decisions that were premised on Airbus sponsorship, and that it would fully cooperate with the Malaysian Anti-Corruption Commission (MACC).
Malaysia’s Securities Commission said on Sunday it would also examine whether AirAsia broke securities laws.
The allegations were revealed on Friday as part of a record $4 billion settlement Airbus agreed with France, Britain and the United States. Prosecutors said the company had bribed public officials and hidden payments as part of a pattern of worldwide corruption.
Airbus said at the weekend it would not comment on the Malaysian investigations.
Analysts said the accusation against AirAsia comes at a particularly bad time as airlines grapple with a slowdown in business because of the fast-spreading coronavirus epidemic that has killed more than 300 people in China and disrupted air travel.
“Besides being embroiled in this corruption scandal, we expect a tough operating environment to persist over the medium term with maintenance cost remaining high … and concerns over the Wuhan virus outbreak which could derail propensity for air travel in the region,” Malaysia’s Kenanga Investment Bank wrote in a research note.
TA Securities downgraded AirAsia Group stock to “sell” from “buy”.
“We choose the ‘sell first, ask questions later’ approach to avoid the uncertainty in association with the corruption investigation by MACC, where the impact on AirAsia could be significant in terms of corporate governance,” it said in a note.
(Reporting by Krishna N. Das; Editing by Himani Sarkar and Christopher Cushing)
FILE PHOTO: Thai AirAsia Airbus A320 plane prepares for take off at Don Mueang International Airport in Bangkok
A Boeing 737 Max aircraft taxis the runway at the Renton Municipal Airport in Renton
SYDNEY (Reuters) – Papua New Guinea carrier Air Niugini has updated its contract with Boeing Co <BA> to delay the delivery of its four 737 MAX jets on order until at least 2024, the airline’s chief executive said on Tuesday.
The carrier had been due to receive its first 737 MAX this year.
Air Niugini Chief Executive Alan Milne told Reuters the delay would give the airline more time to complete a broader review of its fleet plans, including a replacement for its smaller Fokker jets.
“This will then determine if the MAX is still appropriate for Air Niugini, or whether another Boeing product would better suit as a replacement for the 737/767,” he said, in reference to older models in the airline’s fleet.
Milne said it was possible the 737 MAX orders could be switched to the smaller Embraer SA <ERJ> E2 family if Boeing’s deal to buy the bulk of the Brazilian planemaker’s commercial division closes.
“Air Niugini is a valued Boeing customer and we are working closely with the airline to meet its evolving fleet requirements,” a Boeing spokesman said. “Unfortunately, we do not disclose ongoing customer discussions and have no further comment.”
Some other Boeing customers, including Malaysia Airlines, Virgin Australia Holdings Ltd <VBHLF> and Norwegian Air Shuttle ASA’s <NWARF> leasing arm have also postponed the delivery of 737 MAX jets since the model was grounded globally last March after two fatal crashes.
Boeing confirmed on Monday that it has temporarily halted production of the 737 MAX in Washington State in recent days. The company had said in December it would halt production at some point this month.
(Reporting by Jamie Freed; Editing by Paul Simao and Sam Holmes)
(Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it expects a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.
The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement.
“Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired,” the U.S. carrier said.
Several airlines including India’s SpiceJet Ltd <SPJT>, Malaysia’s AirAsia Group Bhd <AIABF>, South Korea’s JejuAir Co Ltd <089590> reduced the number of flights to the city in the fourth quarter as the protests grew increasingly violent, disrupting daily life.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
FILE PHOTO: Chief Operating Officer Bellew of Ryanair attends a news conference in Frankfurt
DUBLIN (Reuters) – Ryanair <RYAAY> heads to court on Tuesday to try to prevent operations chief Peter Bellew from joining arch-rival easyJet <ESYJY> until 2021.
Europe’s biggest budget airline said in July that the former Malaysia Airlines boss would step down at the end of the year.
But after easyJet announced Bellew’s appointment as its new chief operations officer a week later, Ryanair launched legal proceedings in Ireland’s High Court.
Ryanair argues that all its senior executives commit to non-compete clauses barring them from joining a competitor for 12 months after leaving the Irish airline.
Ryanair boss Michael O’Leary told reporters in September that the only issue was whether Bellew, who is currently working out his notice, can join easyJet on Jan. 1, 2020, or Jan. 1, 2021, a full 18 months after easyJet announced his appointment.
An easyJet spokeswoman declined to comment on the case. Bellew has not commented on the case since Ryanair initiated proceedings.
O’Leary has said the timing of Bellew’s switch is sensitive because of the problems Ryanair is currently having with Boeing’s <BA> grounded 737 MAX jet, which have slowed down its growth plans.
Ryanair is one of Boeing’s biggest customers for the MAX 737, with 210 on order, and the airline said last month it expected a further delay to deliveries that could leave it without the new jets next summer.
Bellew left his role as CEO of Malaysia Airlines two years ago to return to Ryanair where he was director of flight operations before leaving for Kuala Lumpur in 2014.
Tasked with tackling a pilot revolt that resulted in Ryanair’s first ever strikes, Bellew has helped patch up relations with staff and agree deals on pay and conditions with trade unions that have quelled the unrest.
An Irish national, Bellew described his return to Ryanair in 2017 as “a form of national service” to help what he described as Ireland’s greatest company. Some observers had seen Bellew as a possible future Ryanair chief executive.
(Reporting by Padraic Halpin; Editing by Mark Potter)
Nov 29 (Reuters) – Airlines that fly to and from Hong Kong will be able to keep their prized airport slots even if they temporarily cut capacity due to weak travel demand through March, according to the Hong Kong Civil Aviation Department.
Many airlines, including flagship home carrier Cathay Pacific Airways Ltd, South African Airways and Malaysia’s AirAsia Group Bhd have cut flights to and from Hong Kong temporarily as a result of sometimes violent anti-government protests that have led to a sharp fall in tourist and business travel demand.
More than 5,800 people have been arrested since the unrest broke out in June over a proposal to allow extraditions to mainland China, the numbers grew in October and November as violence escalated.
Under more normal conditions, it is tough for airlines to get take-off and landing slots at Hong Kong’s airport because it lacks capacity until a third runway will come into operation in 2024.
A “use-it-or-lose-it” rule stipulates an airline normally only keeps slots out of historic precedence if it can demonstrate it used them at least 80% of the time in the previous airline scheduling season.
The current winter season, which began on Oct. 27, ends on March 28, 2020.
Hong Kong’s Civil Aviation Department said in a statement to Reuters on Thursday evening that in order to provide airlines with greater flexibility in aircraft deployment to deal with the fall in passenger demand, the “use-it-or-lose-it” rule had been temporarily suspended for the winter season.
Airport Authority Hong Kong reported declines in October of 13% in passengers and 6.1% in the number of inbound and outbound flights – the steepest falls since the unrest began.
(Reporting by Jamie Freed in Sydney Editing by Marguerita Choy)
SEPANG, 13 November 2019 – AirAsia has unveiled a special ‘Save our Malayan Tiger’ aircraft livery in support of the government’s campaign to save the fast-disappearing Malayan tiger.
The ‘Save Our Malayan Tiger’ livery forms part of AirAsia’s ongoing sustainability efforts to support conservation and environmental programs, and would encourage millions of people to pledge their support for the cause.
The Airbus A320 aircraft livery was unveiled by the Minister of Water, Land and Natural Resources Yang Berhormat Dato’ Dr Xavier Jayakumar alongside AirAsia Group CEO Tony Fernandes, AirAsia Group President (Airlines) Bo Lingam and AirAsia Malaysia CEO Riad Asmat here in Sepang today.
AirAsia Group Head of Global Affairs & Sustainability, Shasha Ridzam said, “Malayan tigers are a majestic symbol of strength and part of our national identity. We would never want our children to grow up in a world where the Malayan tiger exists only as an image on the coat of arms. That is why we must play our part in protecting them. I hope this new livery helps to bring the government’s wildlife conservation campaign to life.”
AirAsia Group CEO Tony Fernandes also added, saying, “Congratulations to the Ministry of Water, Land and Natural Resources for taking proactive measures in protecting our Malayan tigers, and we’re proud to be able to do our part in helping this campaign.”
Minister of Water, Land and Natural Resources YB Dato’ Dr Xavier Jayakumar said, “We are proud to take the Save Our Malayan Tiger and Hutan Kita campaigns to new heights with AirAsia. The alarming decline of our national symbol is clear evidence that we need to do more when it comes to conserving our tigers. Our Hutan Kita campaign is an important cause as well, as without our forests, there will be no tigers and wildlife. We hope with AirAsia’s support, we will further raise the awareness on these important messages not just in Malaysia but in the region as well and be the vehicle of change for our tigers.”
AirAsia has also extended its support to the Ministry of Water, Land and Natural Resources’ environmental campaigns by sponsoring return flights for 10 orang asli to attend the Hutan Kita Exhibition Launch in August 2019, in addition to supporting a visit to the National Wildlife Rescue Center (NWRC) in Sungkai, Perak for its Allstars in October 2019.
AirAsia’s sustainability efforts include guest education, carbon reduction and waste management, the collection and separation of recyclable items on board and community-based tourism programmes such as JourneyD. AirAsia also fosters social enterprise initiatives across Asean through its philanthropy arm, AirAsia Foundation.
AirAsia X orders 12 more A330neo and 30 A321XLR aircraft
AirAsia X, the long-haul unit of the AirAsia Group, has finalised a firm order with Airbus for an additional 12 A330-900 and 30 A321XLR aircraft. The contract was signed by Tan Sri Rafidah Aziz, Chairman, AirAsia X Berhad and Guillaume Faury, Chief Executive Officer, Airbus in Kuala Lumpur today, in the presence of Tun Dr Mahathir Mohamad, the Prime Minister of Malaysia.
Tan Sri Tony Fernandes, Chief Executive Officer, AirAsia Group, who was present at the signing, said: “This order reaffirms our selection of the A330neo as the most efficient choice for our future wide-body fleet. In addition, the A321XLR offers the longest flying range of any single-aisle aircraft and will enable us to introduce services to new destinations. Together, these aircraft are perfect partners for long-haul low-cost operations and will allow us to build further on our market leading position in this fast-growing sector.”
Tan Sri Rafidah Aziz, Chairman of AirAsia X Berhad, said: “Today’s announcement is testament to our confidence and commitment to longer haul air travel. This is the future of our long-haul operations. The A330neo’s revolutionary new features and modifications will move our long-haul service sectors up to a higher level and allow AirAsia X to look at expanding beyond the eight-hour flight radius, such as to Europe, for example.”
Guillaume Faury, Chief Executive Officer, Airbus commented: “AirAsia X has been the pioneer of the long-haul low-cost model in the Asia-Pacific region. This new order for the A330neo and A321XLR is a true endorsement of the Airbus solution to meet mid-market demand with a combination of single-aisle and wide-body products. This powerful solution will provide AirAsia X with the lowest possible operating costs to expand its network and enable even more people to fly further than ever before.”
The new contract increases the number of A330neo aircraft ordered by AirAsia X to 78, reaffirming the carrier’s status as the largest airline customer for the type. Meanwhile, the A321XLR order sees the wider AirAsia Group strengthen its position as the world’s largest airline customer for the A320 Family, having now ordered a total of 622 aircraft.
AirAsia X currently operates a fleet of 36 A330-300s on services to points within the Asia-Pacific region and the Middle East. In addition, in August, the first A330neo joined the fleet of AirAsia’s Bangkok-based long haul affiliate, AirAsia X Thailand. The aircraft is the first of two leased A330neos joining the airline’s Thai affiliate by the end of the year.
The A321XLR is the next evolutionary step from the A321LR which responds to market needs for even more range and payload, creating more value for the airlines. From 2023, it will deliver an unprecedented Xtra Long Range of up to 4,700 nm – 15% more than the A321LR and with 30% lower fuel burn per seat compared with previous generation competitor aircraft.
The A330neo is a true new generation aircraft building on the A330’s success and leveraging on A350 XWB technology. It incorporates the highly efficient new generation Rolls-Royce Trent 7000 engines, and a new higher span 3D optimised wing with new Sharklets. Together these advances bring a significant reduction in fuel consumption of 25% compared with older generation competitor aircraft of a similar size. The A330 is one of the most popular wide-body families ever, having received over 1,700 orders from more than 120 customers.
